Ride-hailing corporation Uber Technologies Inc. is in talks to buy Careem, its rival in the Middle-East. The acquisition will cost Uber a hefty price of around $2 billion - $2.5 billion (Dhs7 billion - Dhs9 billion).
This information was disclosed by people closely linked to the matter. However, they have not revealed their identities due to the confidentiality of the talks.
Although nothing has been confirmed, it is said that Careem’s management is persuading shareholders to give a green light.
Talks of a merger between the rivals started in July, and at the time Uber wanted to have controlling interest over the combined firm. Even then, there were talks of Uber wanting to buy-out Careem.
Neither of the companies have given an official statement. However, Careem sent out an email that read the following:
“We believe the consumer internet opportunity in the region is massive and untapped.”
“In the last couple of years, the rest of the world has begun to embrace this opportunity and we have been approached by multiple strategic and financial investors. Our ambition remains to build a lasting tech institution from the region.”